Canada's Digital Future at a Crossroads Amid Investment Chill

OTTAWA, ON – May 20, 2026 – As Canadian telecommunications leaders gather in Ottawa today, they face a stark reality: Canada's digital infrastructure, the backbone of its modern economy, is at a critical inflection point. The one-day "Connecting Canada" conference, convened by the Canadian Telecommunications Association (CTA) and the global mobile industry organization GSMA, aims to address a growing tension between the soaring demand for connectivity and what industry insiders describe as a deteriorating investment environment.

"Canada's telecommunications sector is at an inflection point," said Robert Ghiz, President & CEO of the Canadian Telecommunications Association, in a statement leading up to the event. He highlighted that while providers deliver faster speeds and lower prices, the pressures are intensifying. "The discussions taking place at Connecting Canada come at a pivotal moment and will help determine whether our country continues to be a leader in connectivity, innovation and digital infrastructure, or risks falling behind."

The conference agenda is packed with urgent topics: policy priorities, regulatory pressures, future spectrum capacity, and the escalating war against digital fraud. At stake is Canada's ability to maintain its competitive edge and ensure its citizens and businesses can thrive in an increasingly connected world.

The Investment Squeeze

For years, Canada's telecom sector has been a powerhouse of capital investment. Major providers have poured billions annually into expanding fibre-optic networks and deploying 5G technology. In 2024, Canadian telecom companies invested approximately $282 per capita on network development, a figure that outpaces both the United States ($193) and the United Kingdom ($225). The sector's capital intensity—the ratio of capital expenditures to revenue—averaged 18% between 2020 and 2024, higher than many international peers.

However, recent data signals a worrying trend. After peaking at $13 billion in 2022 and 2023, capital expenditures by major providers dipped to $12 billion in 2024. A 2026 CRTC report noted that total telecommunications service revenue was flat in 2024 compared to the previous year, with growth in mobile services being offset by declines elsewhere. This financial pressure is compelling companies to re-evaluate major spending plans.

The primary culprit, according to industry advocates, is a challenging regulatory landscape. The most contentious policy is the CRTC's decision to mandate that major telecom companies sell wholesale access to their proprietary fibre-optic networks to smaller competitors at regulated rates. First implemented in Ontario and Quebec in 2023 and expanded nationwide in 2024, the policy is intended to increase competition and lower prices for consumers.

However, the industry argues it creates a powerful disincentive to invest. The logic is simple: why spend billions building a network if your competitors can use it without shouldering the same financial risk? In a stark illustration of this tension, one of Canada's largest providers announced a cut of over $1 billion in planned investments shortly after the nationwide expansion of the rules, directly impacting fibre deployment in rural and underserved communities.

Fortifying the Digital Gates

As networks become more essential, they also become more attractive targets. A key focus of the conference is the escalating battle against sophisticated cyber threats and digital fraud, which erode public trust and inflict massive financial damage. According to the Canadian Anti-fraud Centre (CAFC), Canadians lost over $638 million to fraud and cybercrime in 2024, a significant increase from the $578 million reported the previous year. Experts warn this is just the tip of the iceberg, with only an estimated 5-10% of incidents ever being reported.

Investment scams remain the most financially devastating, accounting for nearly $311 million in losses in 2024. However, social engineering scams, where fraudsters impersonate officials or trusted entities to manipulate victims, are on the rise and lead to high average losses. The Canadian Centre for Cyber Security warns that ransomware remains a persistent threat to organizations, while state-sponsored actors increasingly target Canadians and their critical infrastructure.

"Countries around the world are recognizing that advanced connectivity infrastructure is essential to economic competitiveness, innovation and digital resilience," noted Lara Dewar, Chief Marketing Officer at the GSMA. She emphasized that maintaining Canada's reputation for high-quality networks requires collaboration to combat threats like scams and digital fraud. The conference aims to foster discussions on coordinated action and international cooperation to build more resilient and trusted digital networks for all Canadians.

Charting the Path to 6G

While grappling with today's challenges, the industry must also plan for tomorrow. A significant portion of the discussion will be dedicated to future spectrum capacity and the path to next-generation wireless technologies like 6G. Innovation, Science and Economic Development Canada (ISED) is already laying the groundwork, with plans for a crucial auction of millimetre wave (mmWave) spectrum in 2027, which is vital for ultra-fast 5G applications and future 6G services.

Despite this forward planning, some experts see potential roadblocks. Canada's current decision not to open the upper 6 GHz band for licensed mobile use—a band that many other leading nations are embracing—could put the country at a disadvantage for future mobile capacity. As the world looks toward the World Radiocommunication Conference in 2027 (WRC-27) to identify new bands for mobile use, Canada's strategy will be under intense scrutiny.

This planning is critical given Canada's current global standing. According to April 2026 data from Ookla Speedtest, Canada ranks a respectable 16th globally for fixed broadband speeds but a more modest 45th for mobile speeds. While 94.3% of the population has 5G coverage, a persistent digital divide means that reliable, high-speed access remains a dream for many in rural and remote regions.

Initiatives like the National Research Council's development of Terahertz (THz) technology, which promises speeds up to 100 times faster than 5G, show Canada's potential for innovation. However, realizing the promise of 6G and closing the digital divide will require the very sustained, large-scale investment that the industry now warns is under threat. The outcomes of the discussions at Connecting Canada will be a crucial indicator of which path the nation will take.